Build the complete purchase budget
The purchase price is not the only funding requirement. Legal costs, valuation, transaction costs and any works needed before occupation can affect the cash required. Identify the contribution available and the amount you would need to borrow.
A valuation and the lender’s advance can differ from the agreed price. Avoid assuming the finance will cover a fixed proportion until the proposal has been assessed.
Compare buying with continuing to lease
Ownership can change the business’s flexibility and capital commitments. Compare the proposed loan repayments and ownership costs with the lease alternative, including the impact on cash available for the business itself.
The property should suit the intended use. Get appropriate professional advice on the purchase, the premises and the agreement; the lending decision does not replace due diligence.
Explain the transaction clearly
- Whether the business will occupy the property
- The property details and proposed use
- Purchase and finance conditions and dates
- Existing leases or tenancy information where relevant
- The business cash flow and other borrowing commitments
What to prepare
- Property and contract information
- Purchase budget and contribution
- Financials and repayment forecast
- Valuation and settlement requirements
Common questions
Is commercial property finance the same as a home loan?
No. Commercial property and residential mortgage products can involve different criteria and terms.
Does this page cover property development?
It introduces commercial premises funding. Development and construction transactions require their own project-specific assessment.
General information only. Product terms and availability vary. Check the actual proposal and obtain advice appropriate to your circumstances.